Ready to dive into the fascinating world of Berkshire Hathaway shares? Let's go on this journey together! Understanding the shares of this iconic company, led by the legendary Warren Buffett, is crucial for any aspiring or current investor. It's not as simple as just one ticker symbol, and we'll break it down for you, step-by-step.
Step 1: Understand the Two Classes of Shares (BRK.A and BRK.B)
Before we get to the numbers, it's essential to grasp a fundamental concept: Berkshire Hathaway has two classes of common stock. Think of it like two different tiers of a club membership, each offering different benefits and at different price points.
Class A (BRK.A): The "Original" Share. This is the classic, high-priced share that Warren Buffett has always protected. The price of a single Class A share is staggeringly high, making it inaccessible for the average retail investor to purchase a full share. Why is it so expensive? Because Warren Buffett has never split the stock. This is a deliberate strategy to attract long-term, committed investors who are aligned with the company's philosophy of value investing.
Class B (BRK.B): The "Baby" Share. Created in 1996, the Class B share was a response to the rise of unit trusts that sought to replicate Berkshire's performance. Buffett wanted to offer a more affordable entry point for smaller investors while also maintaining control and preventing the original Class A shares from being diluted. The Class B shares are essentially a fraction of the Class A shares, and their price is significantly lower.
So, which one are you looking at? It's a critical first question to ask. The number of shares available for each class is very different, and it's essential to know which one you're interested in.
Step 2: Uncover the Number of Class A (BRK.A) Shares
Now, let's get into the hard numbers. The key here is to look for the "shares outstanding" or "shares issued" figures in the company's financial reports, which are usually found in their quarterly or annual filings with the Securities and Exchange Commission (SEC).
The total shares outstanding are quite small. The number of Class A shares is in the thousands, not millions or billions. This is a testament to the high price and the company's policy of not splitting the stock.
As of the most recent data, the total number of Class A shares outstanding is around 1.44 million. This number can fluctuate slightly over time due to share buybacks, but it remains remarkably low.
A tiny number, isn't it? It's one of the most exclusive and expensive stocks in the world. As of June 2025, Warren Buffett's stake alone is 198,117 Class A shares, which is a significant portion of the total.
Step 3: Uncover the Number of Class B (BRK.B) Shares
Here is where the numbers get much, much larger. The Class B shares were created for accessibility, and their quantity reflects that.
The total shares outstanding are in the billions. This is a stark contrast to the Class A shares.
As of the quarter ending March 31, 2025, the number of Class B shares outstanding was approximately 2.16 billion.
This large number is what allows individual investors to buy a share for a manageable price, making Berkshire Hathaway accessible to a much broader audience.
Consider this: for every one Class A share, there are 1,500 Class B shares. This 1-to-1,500 ratio is a fixed conversion rate that allows you to swap a Class A for 1,500 Class B shares.
Step 4: Understand "Available to the Public" vs. "Outstanding"
This is an important distinction to make. When you look up "shares outstanding," you get the total number of shares that have been issued by the company. However, not all of these shares are available for the public to trade on a stock exchange.
Shares Outstanding: This is the total number of shares, including those held by insiders (like Warren Buffett and other executives), the company itself (as treasury stock), and the public.
Shares Available to the Public (Float): This refers to the shares that are readily available for trading in the open market. Shares held by insiders or restricted by certain agreements are not part of the public float.
For Berkshire Hathaway, a significant portion of the Class A shares are held by insiders like Warren Buffett. This means the actual number of BRK.A shares that are "available" to the public to buy and sell is even smaller than the total outstanding number. The Class B shares have a much larger float, as they are widely held by individual investors and institutional funds.
Step 5: How Share Buybacks Affect the Number of Shares
One key factor that influences the number of shares outstanding is share buybacks. Berkshire Hathaway has a policy of buying back its own shares when Warren Buffett and his partner, Charlie Munger (until his passing), believe the stock is trading below its intrinsic value.
Decreasing Share Count: When a company buys back its shares, the number of outstanding shares decreases. This effectively increases the ownership stake of the remaining shareholders and can be a positive sign for investors.
Berkshire's Buyback Policy: Berkshire has been actively repurchasing its shares in recent years, which has contributed to the slight decline in the total number of shares outstanding. This is a direct benefit to existing shareholders.
This is a key part of Buffett's capital allocation strategy. Instead of paying a dividend, he prefers to use the company's cash to buy back shares, which he believes is a more efficient use of capital.
10 Related FAQs: How to...
How to find the most up-to-date share count for Berkshire Hathaway?
You can find the most current shares outstanding figures in Berkshire Hathaway's latest quarterly or annual reports (Form 10-Q and 10-K, respectively) filed with the SEC. You can access these documents on the SEC's EDGAR database or on the Berkshire Hathaway investor relations website.
How to buy a fractional share of Berkshire Hathaway Class A?
While you can't buy a full BRK.A share, many brokerage platforms now offer fractional share investing, which allows you to buy a portion of a share. This makes it possible to invest in BRK.A with a smaller amount of money.
How to convert Berkshire Hathaway Class B shares to Class A?
You cannot convert Class B shares into Class A shares. The conversion is a one-way street: you can convert 1 Class A share into 1,500 Class B shares, but not the other way around. This is a key difference in their structure.
How to choose between buying BRK.A and BRK.B?
For most retail investors, BRK.B is the only realistic option due to its affordable price. BRK.A is for institutional investors or ultra-high-net-worth individuals. The main difference is the price and the voting rights.
How to understand the voting rights of each share class?
One BRK.A share has 10,000 times the voting rights of a single BRK.B share. This structure ensures that Warren Buffett and his long-term partners maintain control of the company, even as more Class B shares are issued.
How to calculate the market capitalization of Berkshire Hathaway?
To calculate the market capitalization, you multiply the number of shares outstanding by the current share price for each class and then add them together. For example: (BRK.A shares outstanding * BRK.A share price) + (BRK.B shares outstanding * BRK.B share price) = Market Cap.
How to check if Berkshire Hathaway pays dividends?
Berkshire Hathaway is famous for not paying dividends. Warren Buffett believes in reinvesting the company's earnings back into the business or using them for share buybacks, which he argues is a more efficient use of capital for shareholders.
How to read Berkshire Hathaway's financial reports?
Start with the "Shareholder Letter," which is a must-read for any investor. Then, you can dive into the Form 10-K (annual report) and 10-Q (quarterly report) to find detailed financial statements and information on shares outstanding.
How to buy Berkshire Hathaway shares from India?
You can buy Berkshire Hathaway shares from India by opening an international trading account with a brokerage that offers access to US stocks. You will need to complete a KYC (Know Your Customer) verification and transfer funds in US dollars.
How to interpret Berkshire Hathaway's share buyback policy?
A share buyback policy signals that the company's management believes the stock is undervalued. By reducing the number of outstanding shares, each remaining share represents a larger portion of the company's ownership, which can increase its value over time.
